Typically, a high-value homeowner owns increased assets. That means you have more to lose in the event of a lawsuit. The good news is that High-value home insurance policies provide liability coverage, just like a standard policy, and you can choose a coverage limit. But they may also provide for your legal defense costs outside of the liability limit. That leaves more coverage to actually pay for legal judgments and settlements.
Liability insurance under these policies can also provide personal injury coverage (for libel, slander and defamation) which otherwise is typically only available through an umbrella insurance policy.
Additional Increased Coverage
Here are some additional reasons to consider high-value coverage:
Flood insurance. Since National Flood Insurance Program policies don’t offer nearly enough coverage for a luxury property, flood insurance may be provided by a high-value homeowners policy.
Vacation and second homes. You may be able to customize a high-value home insurance policy to include other properties such as vacation homes.
Kidnap ransom and extortion: You can find personal kidnap ransom and extortion coverage from some carriers.
Deductible waivers. Some high-value home insurance policies offer a deductible waiver for large losses.
Complimentary home appraisal. You’ll generally need an appraisal in order to buy a high-value home policy. The insurance company may pay the cost or split it with you.
Risk management services. Your insurer may offer consultations and services that can reduce your loss if disaster strikes.
Last, but not least, here are some additional reasons where a high-value insurance policy can cover you…
- Automatic coverage for sewer backup
- Increased coverage limits for replacing shrubs and trees
- $1,000 for removing each fallen tree as opposed to the standard $500
- Better medical payments limits, such as $10,000 rather than the standard $1,000. Medical payments coverage pays for others’ injuries no matter who was at fault, such as a visitor who falls on your front steps
- Credit card, forgery and counterfeit money coverage of $10,000 as opposed to the $500 limit in a standard home insurance policy
© Copyright 2021. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.
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